Maramures Regional County, Circular Economy Romania 2020 Status Quo REDUCES – Rethinking Sustainable Development in European Regions by Using Circular Economy Business Models
“Impact, Include, Inspire” Writers: Maramures County Council – partner in REDUCES project https://www.cjmaramures.ro/
Cover photo: Baia Mare Butchers’ Bastion - Wooden structure (Author - Maramures County Council)
External consultant: The Chamber of Commerce and Industry Bistrita-Nasaud, www.cciabn.ro
This project report reflects the author’s views only and the Interreg Europe programme authorities are not liable for any use that may be made of the information contained therein. Content
1 Background and context...... 4
1.1 REDUCES project background and objectives...... 4
2 Definitions and methods...... 6
2.1 Circular Economy...... 6
2.1 Circular economy business models...... 6
2.3 Multi-stakeholder governance model...... 7
2.4 Policy instrument ...... 7
3 Regional Circular Economy Status Quo: Maramures...... 9
3.1 Main characteristics of Maramures County ...... 9
3.2 Policy Instrument of Maramures County within REDUCES project...... 13
3.3 Regional Circular Economy profile - Maramures County...... 18
3.3.1 Regional circular economy drivers, strengths and opportunities - Maramures...... 36
3.3.2 Regional Circular economy barriers, weaknesses and threats ...... 43
3.3.3 Development of prospects for circular economy...... 47
4 Regional Conclusion – Maramures County...... 51
5 References And Additional Material...... 55 1 Background and context
1.1 REDUCES project background and objectives
Circular economy changes the methods and REDUCES brings together six European regions: revenue models of business. Instead of traditional ownership, consumption is based on the use of • Southwest Finland services: sharing, leasing and reusing. The new • Utrecht, Netherlands method challenges countries and regions to • Greater Manchester, UK develop and construct new business models that • Valencia, Spain can be used to respond to the global climate crisis, • Bulgaria among other things. • Maramures, Romania
REDUCES contributes to the EU2020 strategy by advocating the priorities of Sustainable, Inclusive and Smart Growth. In addition, improving resource efficiency by sharing experiences on circular economy practices will translate into lower GHG emissions and give a much-needed boost to economic growth in the regional context. The project will also contribute to the vision of “Resource-efficient Europe” via inter- and intraregional cooperation and learning processes. This kind of interaction is vital in order to reach the EU2020 strategy goals. REDUCES also supports the fundamental objectives of decoupling economic growth from the use of resources and increasing the use of renewable energy sources which are underlying themes in the EU2020 strategy. The EU action plan of the circular economy also accentuates the need to create the conditions under which a circular economy can flourish and resources be mobilised. It is recognised in the plan The overall objective of the project is to improve that new business models are needed to enable us the implementation of regional policies in order to rethink our ways of producing and consuming. to enable regions to adopt more environmentally sustainable ways of production and to reduce the negative environmental impacts of economic development. Circular business models can be used to help companies achieve resource efficiency and subsequent net revenue gains, and by doing so help regions achieve a more innovative, resilient and productive economy.
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4 Although circular business models are often environmental sustainability viewed as sustainable by nature, it is recognised 4. To improve the competence of regional that there are uncertainties about their potential actors to assess the environmental impacts of impacts, such as externalities and rebound effects. circular economy business models in order to REDUCES results will facilitate and better enable choose the most feasible and environmentally the adoption of environmentally sustainable sustainable models recognizing regional circular business models with the support of assets, barriers, needs and strengths necessary improved regional policies. for the circular economy transition 5. To improve policy instruments (4 ERDF policies Sub-objectives of the REDUCES project are: and 2 regional plans) via 6 action plans to better introduce or integrate circular economy 1. To increase the knowledge and capacity of business models into the policy instruments regional and European policymakers and and supporting the theme by proposing new stakeholders on circular economy business project ideas or funding. models 2. To improve the competence of partners and The purpose of this Status Quo report is to involved stakeholders to make informed summarize the results of the studies carried out decisions on promoting the transition to the about the existing circular economy business circular economy in regions and actions, strengths, opportunities, threats and 3. To discover innovative and the most weaknesses in Maramures, Romania. The Status feasible circular economy business models Quo report provides the basis for the development in each region, which are instrumental to work planned in the REDUCES project. transforming production value chains towards
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5 2 Definitions and methods
2.1 Circular Economy
activity from the consumption of finite natural resources. At the same time, the amount of waste is reduced and finally it is designed out of the entire system. The focus is on positive, society- wide benefits. The circular economy builds economic, natural and social capital, supported by the transition to renewable energy sources. “Circular economy” can mean a lot of different (Ellen MacArthur Foundation 2017b.) The Finnish things in different sectors. Common denominators Innovation Fund Sitra defines the circular economy include designing out waste and pollution as a future economic model in which natural (reduction of waste), keeping products and resources are used within the Earth’s carrying materials in use (quality improvement and value capacity. (Sitra 2019a). retention), regenerating natural systems (loops, transition) and social aspects, such as creating Based on the knowledge and understanding well-being. (Ellen MacArthur Foundation 2017b.) of the REDUCES project partners, the circular economy refers to socially sustainable business A circular economy refers to an economic system that creates well-being. The objective of the that is based on business models that replace the economy is to maintain and restore the value of current linear economic model. These business our natural resources. Even though the objective models replace the conventional model with reuse, is full circulation, the number and level of loops recycling and alternative production, distribution can vary. The transition to a circular economy, as and consumption processes. A new business well as business in a circular economy, requires context aiming at sustainable development extensive cooperation between different parties. requires extensive action at several levels, ranging from the micro-level (products, businesses and consumers) to the meso-level (eco-industrial parks) and even up to the macro-level (cities, regions, states and even more extensive entities). All of these share a common view and goal of more sustainable business that takes into account the environment, economic well-being and social 2.1 Circular economy business justice at different operational levels. (Kirchherr et models al. 2017, 224–225.) The corporate world is shifting from the traditional According to the Ellen MacArthur Foundation, model of a linear economy towards a circular the aim of a circular economy is to look beyond economy. In the circular economy, production and the current take-make-waste extractive industrial consumption are increasingly based on services model. The idea is to gradually decouple economic instead of owning. The operating methods
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6 and earning models of companies change, and i.e. internal and external stakeholders in the operations need to be updated so that they will dialogue, decision-making and implementation of support the mitigation of climate change. (Sitra solutions to common problems or goals. It relies 2019b.) on the principle that if enough input is provided by all actors involved in a question, the eventual The themes of the circular economy business consensual decisions gain more legitimacy and models investigated in the REDUCES project are therefore better reflect the set of perspectives based on the definitions of the Finnish Innovation rather than a single source of validation. Unlike Fund Sitra. The themes are renewability, sharing in multilateralism, in which governments, as platforms, product as a service, product-life representative of their citizens, take the final extension and resource efficiency and recycling. decisions on global issues and direct international (Sitra 2019a) organizations to implement them, in multi- stakeholderism stakeholders become the central The circular economy business model is an actors. Multi-stakeholderism often disconnects economic model in which business is largely decision-making and the implementation of based on the forms of business mentioned above, these decisions from the interngovernmental i.e. consumption is based on the use of services – sphere, having no obligation to either report to sharing, renting and recycling – instead of owning or take instructions from the interngovernmental and increasing production of goods. Materials are community. (Lin 2018, Gleckman 2018, Szuppinger not destroyed at the end but used over and over & Kállay 2017) again for making new products. (Sitra 2019a) In the REDUCES project, the multi-stakeholder Design plays a crucial role in ensuring that products governance model appears in involvement and are durable and environmentally friendly and that engagement of the stakeholders from the different the materials can be reused at the end of the sectors and levels in all the regions in the project. product life cycle. The circular economy requires Circular economy is not an individual game, us to redesign our ways of working: our products, and this gives a crucial role to wide cooperation business models, cities and the linear systems between different stakeholders. Involvement that have lasted for the past centuries. Choices appears in different ways for different project made at the start of the life cycle have impacts regions depending on the policy instrument and on each phase during the product life cycle. (Ellen its role and activities in the field of business and MacArthur Foundation 2020a) circular economy activities.
2.3 Multi-stakeholder 2.4 Policy instrument governance model In general, a policy instrument is a means The multi-stakeholder governance model is a for public intervention in local, national or governance structure that comprises institutional international economies, referring to any ways of involving non-governmental actors, policy, strategy, instrument or law developed by
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7 government/public authorities and applied on the economic, and administrative concerns. Concerns ground in order to improve a specific territorial of sustainability largely depend not only on what situation. Policy instruments are linkages between instruments are selected but also on how they have policy formulation and policy implementation, been applied. Assessment of policy instruments intended to achieve outcomes which conform can therefore be an important component of to the objectives of public policy. They can take policy sustainability. (Ali 2013) many forms, ranging from regulatory régimes to the provision of services to help improve the In the context of Interreg Europe, “operational performance of businesses, and in most cases, programmes for Investment for Growth and financial resources are associated. However, an Jobs as well as Cooperation Programmes from instrument can sometimes refer to a legislative European Territorial Cooperation are considered framework with no specific funding. (Interreg policy instruments. Beyond EU Cohesion policy, Europe 2020, Saublens 2012) local, regional or national public authorities also develop their own policy instruments. Policy instruments are often known as governing Macroregional strategies can also be considered tools as well, particularly when they are applied policy instruments in the context of Interreg to all conditions associated with them. The Europe. However, considering the characteristics implementation of governing tools is usually of these strategies, it may be easier for projects meant to achieve policy targets of resource to influence the corresponding transnational management but adjusted to social, political, cooperation programmes than the macroregional strategy itself.” (Interreg Europe 2020)
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8 3 Regional Circular Economy Status Quo: Maramures
The total population of Maramures County in 2019 3.1 Main characteristics of is 460,469 inhabitants, compared with 19,405,156 Maramures County at national level.
Maramures County is part of the North-West Economically, Maramures County is medium Region of Romania that covers six counties: Bihor, developed, in 2018 ranking 20st amongst the Bistrita-Nasaud, Cluj, Maramures, Satu Mare Romanian 42 counties, with a GDP of 6,350 euro/ and Salaj. It borders Ukraine to the North; to the inhabitant compared to 9,500 euro/inhabitant at East with Suceava County; to the South with the national level (EUR, current prices, 2017). counties of Bistrita-Nasaud, Cluj, Salaj; and to the West with Satu Mare County. Total area: 6304.4 According to EURES on 01/01/2018 and the labour km2, representing 2.6% of the country’s territory, force ledger, the labour resources in the NW region being ranked 15th in area among Romania’s amounted to 1,647,100 persons, of whom 71.6% counties. 43% of the total area is constituted by were in civilian employment. The rate of registered the mountains; 30% hills, plateaus, foothills; 27% unemployment as at 31 March 2019 was 2.6%, depressions and lowlands. corresponding to 26,500 unemployed persons. EURES shows the lack of data concerning migration Maramures County is one of the most picturesque and emigration. There is a double movement of regions in Romania, with a unique charm persons in the NW region: an internal one, from and an exquisite cultural heritage in different each county to Cluj (the most developed centre of ethnographic areas, unique in this part of Europe. the region) and an external one, to different target There are 76 administrative units in the County countries in the Europe: Germany, Austria, Italy, (2 cities, 11 towns and 63 communes), the most Spain, UK and more. There is a large emigration important being Baia Mare - the county seat, of persons to work abroad (estimated 231,661 hosting all administrative institutions, universities persons according to Eurostat, at national level), as well as a large part of the companies. and that generated within Maramures County, a workforce crisis, before COVID 19 Pandemic. According to Chamber of Commerce and Industry Maramures, labour resources are declining (since 2014) and maintain their declining trend at national, regional and county level. Following the Covid 19 Pandemic, the number of persons coming back started to increase, but there is far too early to consider that the workforce can be balanced, or the number of persons are coming back to stay.
Figure 2 - Romanian administrative map REDUCES
9 Figure 3 - Labour force situation at Maramures county level
The North-West region is, after the Bucharest- of the extractive industry, the decreasing number Ilfov area, the most economically attractive of people employed in agriculture, and a strong development region in Romania, because of a restructuring of the manufacturing sector and well-developed labour market, higher level of continuing raise of the service sector. Maramures salaries and many foreign investment. There is a County hosts 12,842 companies, among them private and competitive business environment, 11,595 are micro companies. The percentage of based on innovation and modern technologies companies’ number, in 2018, shows the following directly linked with the 16 Universities that are important sectors: Commerce – 25.60%, Services – acting within the NW region. As already showed, 23.74%, Construction – 14.10%, Industry – 12.93% the most important county is Cluj, with Cluj- and 2.21% - Research, development and high tech. Napoca municipality, a very important IT center (Cluj IT Cluster) and a centre of excellence in medicine, as well as a very well-known University Centre. Cluj-Napoca has an excellent potential for developing an ICC economy (innovative, creative and competitive) and it represents the most important growth pole for the region.
The economy of Maramures County is diverse: the region has long traditions in the field of agriculture, wood exploitation and processing, the extraction industry - a very important sector in the old times, and other industries. In the recent years, the Figure 4 - Maramures County, Companies Turnover 2018 county’s economy has undergone deep structural changes, materialized in the almost disappearance
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10 Even if the number of companies in industry is not the highest, concerning the total income, industry provides 45.87% and employs 45% of employees. However, the industrial sector is considered insufficient developed, with relying on low to medium value products, resource intensive, in particular natural resources (wood) and human resources, with high vulnerabilities to market fluctuations and environmental risks. In spite of the existing competitive advantages (first national exported of furniture, tradition, know- how, qualified staff, traditional customers), the development of the industrial sectors are limited in terms of technological capabilities and the research environment, as well as poor horizontal and vertical integration in supply chains.
Figure 5 - Maramures companies, employees by sector
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11 Steam Train – Viseu de Sus (Photo: Maramures County Council)
Tourism is an important sector as well, nevertheless the intensity of the number of Maramures County being currently one of the companies in rural areas is well below the national most popular tourist destinations in Romania, average. Most companies are located in Baia Mare, both for Romanian and foreign tourists, due to its benefiting from adequate infrastructure and rich and divers offer: traditions, authentic culture, labour. According to the answers received at the history, beautiful landscape and nature and local survey conducted for this Status quo, it is also the food. There are 849 active companies in tourism, area where the principles of the circular economy employing a number of 3,238 persons. are better known and the industrial symbiosis begins to be considered as a business model. Maramures County is predominantly rural, but
Table 1. Number of companies/urban-rural area
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12 3.2 Policy Instrument of Maramures County within REDUCES project
Romania had intensively developed its 2014-2020, or any other programme, even though programmatic framework approaching the they can be linked to financing sources of the ecologic and innovation aspects, although a operations that are in the strategy portfolio. They national policy addressing in particular circular are important for the relevance of the projects at economy do not exist yet. Amongst the main national, regional and local level. programming documents considering to a certain extent the circular economy are the National In the RDP NW - Long-term vision (2034), the Strategy for Sustainable Development 2013-2020- communities of the North-West Region (Northern 2030, the National Strategy for Competitiveness Transylvania) understand to capitalize together, 2014–2020, the National Strategy for Research, respecting the principles of sustainable Development and Innovation 2014-2020 and the development, natural, material, human National Waste Management Plan 2017-2020. resources, historical and intercultural traditions for a sustained, constant development that makes In the NW region, the key policy instruments linked Northern Transylvania one of the most dynamic to EU Investment and Growth are managed mostly European regions. by the Regional Development Agency North-West, and should have high impact in all counties of the The General objective of RDP NW is “Growth of NW region as they consider the counties needs the regional economy through multidimensional in particular, the actions towards innovation and and integrated development to reduce intra- and transfer to a circular economy. inter-regional disparities and increase the regional standard of living”. According to REDUCES project, the policy instrument addressed by Maramures county is At the regional level, the priorities set out in the the Regional Development Plan for North-West Regional Development Plan North-West Region Region (RDP NW), developed by the Regional for the period 2014-2020 are: Development Agency North-West. In targeting the improvement aimed at increasing resource- Priority 1 - Increasing the economic efficiency, green growth and eco-innovation competitiveness of the region and stimulating and environmental performance management, research and innovation the Romanian partner of REDUCES project – Maramures County Council will consider also the Priority 2 - Increasing the accessibility of the experience from Maramures County Sustainable region, the mobility of people, goods and Development Strategy 2014-2020 and Smart information Specialization Strategy of the North-West Development Region 2014-2020, RIS3. Priority 3 - Increasing the quality of life of the inhabitants of the region The Smart Specialisation Strategy of the North-West Development Region as well as Priority 4 - Protection of the natural and Regional Development Plan NW were not, for anthropogenic environment, efficient use of the programming period 2014-2020, ex-ante resources and reduction of pollutant emissions conditionality for the Structural instruments
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13 These priorities will also contribute to achieving policies driving the adoption of the private and the targets set for the 2020 horizon in the EU 2020 public sector to circular economy principles. Other Strategy, being correlated with the 11 European existing policy interventions are mapped in the Thematic Objectives. table 1, also some examples of such policies at the local, county, regional, national level are provided. Understanding, at a high level, the strengths and possible development areas of the current policy Circular Economy action Plan, launched in March landscape, allows for more targeted identification 2020, is a main part of the European Green Deal of relevant policy interventions later in the project, and announces initiatives for the entire products and to engage stakeholders early on in a discussion life cycle, from design and manufacturing to on which broad types of policy interventions consumption, repair, reuse, recycling and bringing could make sense for the country. This discussion resources back into the economy. The aim of will of course be refined once specific circular the EU action plan is to reduce the consumption economy opportunities and related barriers have footprint in EU, over the next decade, and to been identified; yet getting a reflection started double the rate of circular use of materials, while with key stakeholders as soon as possible is a stimulating economic growth. valuable end in itself. Such a discussion could reveal potential upcoming policy revisions, which The Plan on circular economy includes a are highly relevant to consider when new policy "sustainable products" policy to support the interventions are developed. (EMF, 2015) circular design of all products based on common methodology and principles. It gives priority to Once the barriers have been identified for each reducing and reusing materials before they are circular economy opportunity, an important recycled; promoting new business models and exercise is to systematically map policy options setting minimum requirements to prevent the to overcome them. Mapping policy options is placing on EU market of environmentally harmful just a first step and needs to be followed by cost- products. It will also strengthen the extended benefit analysis and prioritisation, packaging and liability of producers and will encourage the sequencing and building the necessary political consumer empowerment. consensus and momentum for change. Six types of policy can be useful to enable the circular Other existing policy interventions are presented economy: Education, Information & Awareness, in Table 1, as well as some examples of such Collaboration Platforms, Business Support policies at local, county, regional and national Schemes, Public Procurement and Infrastructure, levels. Regional Regulatory Framework, Fiscal Framework.
The European Green Deal is a set of policy initiatives by the European Commission with the overarching aim of making Europe climate neutral in 2050; The general objective of the Green Deal is to become the world's first “climate-neutral bloc” by 2050 and sets goals to many different sectors, including construction, biodiversity, energy, transport and food. The EU Green Deal and the EU Circular Economy Plan are the main
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14 Table 1. Policy interventions map
There are many documents and interconnected for 2014-2020 (MSDS), updated in 2018, setting strategies at the regional, county and local up ambitious vision and aspirations related to levels; although the problem is not their number Maramures County as the ”tourism destination” and consistency, but less effective monitoring and the ”country’s brand”, consequently for this ”a mechanisms and reduced level of their green County with clean environment” is needed, implementation. The main policy instrument an ”attractive business environment” due to its of the region is the Regional Development Plan high competitiveness, relying on innovation and 2014–2020, providing four Strategic Objectives, continuous cooperation with public institutions and three out of four being consistent with the and the research environment, an involved objectives of circular economy (table 1). community of ”educated people” and finally, ”a proactive, efficient and less bureaucratic Moreover, at the Maramures County level, the administration”. main policy instrument to be considered is the Maramures Sustainable Development Strategy
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15 Amongst the thematic objectives in line with this externalities, in this case the impact of the vision, we have identified at least three thematic waste produced out of plastic/glass containers objectives consistent with the aim of circular of any kind. The DRS aims to limit pollution of economy, as can be observed in table 1, for ”keeping various types by creating an incentive to return products and materials in use”, or increasing the a product.4 durability of the products, innovation is needed, based on better collaboration between industry • Extended producer responsibility and research, leading finally to an increased (EPR) scheme is a strategy to add all of the competitiveness of enterprises (O1/OT2, O2/OT4), environmental costs associated with a product while ”designing out waste and pollution” means throughout the product life cycle to the market ”more efficient use of resource”, waste prevention price of that product.5 Extended producer and recycling, and finally less pollution”(O3/OT4). responsibility legislation is a driving force behind the adoption of remanufacturing Apart from local policies, the experience from other initiatives because it "focuses on the end-of- countries shows that national policy instruments, use treatment of consumer products and has provided by the Romanian regulatory framework1 the primary aim to increase the amount and are most effective in waste preventing and degree of product recovery and to minimize recycling: the environmental impact of waste materials".6 (EPR) for packaging, electric and electronic • Pay as you throw instrument (PAYT), in equipment and batteries and accumulators force since 1st of January 2019, is a usage- waste fluxes (WP, WEEE, WA&B), intended to pricing model for reducing the disposal of provide incentives for manufacturers to design municipal solid waste and an effective tool resource efficient and low impact products in increasing waste separation and recycling, (referred as ‘eco-design’ or circular design) and also encourage waste minimization. and to ensure effective end-of-life collection, The result is significant energy savings from environmentally-sound treatment of collected transportation, increases in material recovery products and improved reuse and recycling from recycling, and reduction in pollution from of waste. Until now, the EPR schemes did not landfills and incinerators, and thus reduces proof to be entirely effective; measures were the load of landfills.2 PAYT programs also recently taken to increase their responsibility, indirectly encourage producers to develop transparency and accountability, so far in more efficient designs and environmentally Romania. friendly product life cycles.3
• Deposit return system (DRS), in force since 31st of March 2019 for reusable beverage containers, also known as the advanced deposit fee or deposit-return scheme, is a surcharge on a product when purchased and a rebate when it is returned. A well-known example is when container deposit legislation mandates that a refund is given when reusable/recyclable packaging is returned. Deposit-refund system is a market-based instrument to address
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16 • The Green Public Procurement Law no. 69/2016 should play an important role in ensuring circularity of products and secondary raw materials. The adopted Law on Green Public Procurement states that within 6 months of its adoption, a guide with minimum environmental criteria for groups of products and services will be published, as well as standard specifications and the national green public procurement plan with mandatory targets. The green public procurement guideline was approved by the Order no. 1068/1652/2018 of October 4th, 2018.
Maramures County Headquarters (Photo: Maramures County Council)
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17 3.3 Regional Circular Economy profile - Maramures County
Romania is struggling regarding circular economy Romania is only at the beginning of its transition efforts with the majority of circular economy for a circular economy, the policy framework performance indicators ranking in the bottom is perceived as fragmented and discontinuous. quarter of member states, meanwhile its potential There is a need for holistic, systematic approach for transitioning to the circular economy is high by public authorities to create good conditions for and it has the lowest per capita waste production circular economy, while the cooperation between with just 261kg per year, compared to the EU SMEs and research institutes shall be enhanced. average of 487kg/capita.7 The recommendation is to create communication platforms between the industries and academia The Waste Management Law no. 211/2011 and its and raise engagement of the companies in amendments, as the main legal act in Romania, research projects.9 is a full transposition of the Waste Framework Directive and establishes the hierarchical There are several local and regional strategic approaches in waste management, starting from documents analysing the status and trends in product sustainable design, waste avoidance the county’s economy, the most important, the and waste sorting and recycling obligations for all Maramures County Sustainable Development stakeholders, to the waste final treatment. Strategy for 2014–2020 (MSDS), last reviewed in 2018 and the North-West Smart Specialisation The only national research so far, analysing the Strategy elaborated in 2015 (RIS3NV), used as national potential for circular economy, was a source of information for identification and released in by European Institute in Romania characterisation of the sectors relevant for the in 2018 and aimed at promoting a systemic circular economy. perspective of the circular economy, identifying the steps needed to operationalize this concept, • Smart Specialization Strategy of the North- developing cross-sectoral industrial value chains, West Development Region: The research highlighting synergic aspects in relation to the highlights the potential of Maramures County green economy.8 The research highlighted the for smart specialisation and circular economy in need for updating legislations, developing new wood processing and furniture manufacturing, standards for various waste categories, improving the opportunities for more resource efficiency data collection and identify opportunities for and the development of more durable developing sustainable business, and promoting products, the advanced manufacturing of resource efficiency. electrical equipment, focused on developing new equipment automation and robotics and A suggestive research about the circularity potential the agro-food sector meaning production in Romania, has been performed in the frame of of safe, healthy, accessible and nutritionally the Moveco Interreg Europe Project and has been optimized foods based on indigenous concluded in a roadmap for circular economy varieties and breeds, based on culinary from the perspective three resources and waste traditions and on the application of high value fluxes, packaging and packaging waste, electric natural agriculture, precision agriculture and and electronic equipment and waste, batteries sustainable agriculture. More information on and accumulators and related waste. According to sectors is provided in the following section. the study, due to the social economic conditions
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18 • Maramures County Sustainable Development According to international experiences, assessing Strategy 2014-2020, setting at least three the current level of circularity provides useful thematic objectives consistent with the guidance to set an appropriate ambition level. The aim of circular economy principles such as: circularity baselining gives a first indication of the increasing the durability of products, a key areas in which a country/region is more or less direction that requires increased innovation, advanced compared to its peers, which provides better collaboration between industry and useful input for setting the ambition level. It also research, leading finally to more competitive provides initial high-level direction on the solution enterprises, prevent waste and pollution and space. The ‘circularity potential’ dimension preserve the clean and attractive natural considers not only total resource consumption environment of Maramures. Apart from key and waste generation, but also the potential to economic, well developed and mentioned in avoid and/or valorise that waste. the above section, the documents highlights the opportunities in the tourism sector, that According to international experiences, assessing could become indeed more circular and two the current level of circularity provides useful other sectors that could support the circular guidance to set an appropriate ambition level. The economy, the IT&C sector and the existing circularity baselining gives a first indication of the potential for renewable energy. areas in which a country/region is more or less advanced compared to its peers, which provides Another academic research, attempts to identify useful input for setting the ambition level. It also the potential or circular economy at the County’s provides initial high-level direction on the solution level , by calculating the Circular Economy Potential space. The ‘circularity potential’ dimension Indicator (CEPI) to quantify the development considers not only total resource consumption potential of a circular economy, based on the and waste generation, but also the potential to County’s waste recycling performance, the avoid and/or valorise that waste. level of economic development, infrastructure, urbanization, and education.10 The indicator In order to understand the regional circular has been calculated for 2014, and indicates economy profile, the level of circularity in the Maramures as an area with important potential focus sectors shall be assessed. According to the for circular economy. EU monitoring framework on the circular economy, the indicator used to measure the circularity level is the circular material use rate, or the circularity rate as the share of material resources used coming from recycled products plus the recovered materials and the overall materials use. Other metrics characterising the circular economy profile are referring to four key areas (HMF, 2015), such as: resource productivity, as the share between the GDP and the domestic material consumption, the recycling rate, as the share between the recycled waste and the overall waste generation, energy and greenhouse gas emissions, circular Figure 6 - Circularity potential of the Romanian Counties activities, ideally comprises of a complete set of indicators including the adoption of product
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19 long life (circular design, maintenance, reuse, regulatory barriers, and understanding how other repair), regenerate (refurbish, remanufacturing) policy levers can best be developed. and using a service instead of a product (sharing, leasing, renting) that are not measured due to The main identified stakeholders relevant for unavailability of data. the future development of circular economy in Maramures County are actors from the public The baseline indicators are difficult to calculate and private sector, academia, research and civil at the county’s level in Romania (not only for society: Maramures), due to data gaps, in particular referring to material resources used coming • County Council and 76 local administrations, from recycled products and recovered materials. the local government fully decided to enable However, the circularity rate in Maramures is required conditions, get involved, and stimulate probably near or below the national circularity and enable companies and consumers to rate value: 1.8 comparing to 11.2 (Eurostat, EU27 contribute to a circular economy; 2017), meaning that the circularity rate in the region was almost 10 times smaller than the EU • Association of Intercommunity Development 27 average. for Integrated Waste Management (ADIGIDM MM), having responsibilities in setting up, Companies cannot create a circular economy on organizing, regulating, financing, operating, their own, and relevant stakeholders have an joint monitoring and management of a important role to play. Whilst most manufacturers necessary sanitation service and management will need to change or to adapt business models, solid waste within all local administrations in regulatory environments need to provide the County; appropriate frameworks, and consumers need to shift their mind-set and to be educated in this • Five Local Action Groups (GAL) with activities regard. in education and advisory for farms and small agricultural producers, micro businesses National governments play a central role in setting development in tourism and creative the political scene, for instance by introducing industries; new tax regulation, including higher taxes on unsustainable products and energy to mitigate • Energy Management Agency Maramures their negative impact, and lower taxes on labour having as main mission to promote energy to promote repair services. efficiency and renewable energy in the public and private sector; Local authorities have a key role in building the appropriate infrastructure, setting the right • Environmental NGOs: EcoLogic Association, entrepreneurial environment and enhancing WWF Romania – Maramures Branch, collaboration between the main actors that Maramures Ecology and Tourism Centre, make possible circular economy. Convening and Geommed Professional Association, Ecological engaging with stakeholders in a variety of ways Society, Eco Rodna Association and others. can also support the design and application of other policy levers, such as creating a sense of • Chamber of Commerce and Industry shared ownership of a circular economy city Maramures – is a very important local roadmap, working with businesses to identify stakeholder being an economic development
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20 driver. The organization activity focus on adult In order to assess the circularity of Maramures education, business development as well as County, a survey was conducted through a targeted sustainable development of the area; questionnaire applied to the main stakeholders in the County, aimed at gaining insights into the • Maramures Entrepreneurs Association is a general perception of circular economy, main member of the Regional Thematic Group (GTR) characteristics of circular products, barriers and on Energy Efficiency and the Circular Economy, enablers of circular economy. which aims for a greener, low-carbon Europe by promoting the transition to clean and fair There were 93 responses to the questionnaire, energy, green investment and the circular coming from nine different sectors: 31.2% of the economy, climate change adaptation and risk responses came from public authorities in the prevention and management”; region, 16.1% from the industrial sector, 12.9% from public institutions, 7.5% from the service • Center for SMEs Development Maramures is an sector, 7.5% from NGOs and 5.4% from IT, 5.7% organisation focused on vocational education, from retail sector and only 3.2% from tourism business incubation and development, start- sector. up programs, sustainable entrepreneurship, etc.; The great majority, 96.7% agreed that are taking into consideration the environmental protection • Research Institutes, the sector is in current and future activities, 60% of the underdeveloped as a result of the strong respondents are familiarised with concept of dismantling or restructuring of former research circular economy, while 39.8% have never heard institutes and the underfunding of this sector, of it. From those familiarised, 43% have been worth mentioning here the Research and informed regarding circular economy, 34.4% have Design Institute for Non-Ferrous Metallurgy been involved in resource efficiency and waste CEPRONEF Baia Mare and the Technology reduction projects, 15.1 % in projects regarding Information Center – UTCN CUBM Baia Mare; product life extension based on repair and maintenance, 9.7% in projects regarding renewal/ • Relevant public institutions: Statistical regeneration, 46.2% in project regarding services Direction, Environment Protection Agency, instead of products, 5.4% in projects regarding Environmental Guard; sharing platforms, while 30.1% have no experience at all in circular economy projects. • Utilities provider companies: DRUSAL, HERODOT, VITAL; In the stakeholder’s view (between 63 and 73 answers per topic), the main characteristics of • Private sector: agriculture, industrial the circular products are: durability, reparability, sectors, tourism and agro-tourism, local possibilities for reuse, the materials used, public authorities, universities and research those should be recyclable, biodegradable and institutions; compostable, high content of secondary raw materials and a minimised impact of the life • Waste collectors and recyclers – 84 companies cycle. authorised to collect waste, from those 8 authorised also for recovering and recycling packaging waste and metals.11
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21 Figure 7 - Field research - answers received/stakeholders
In the same time, they consider measures such UPOFLOOR, RG HOLZ, RIDORAIL), moulded as international networking, knowledge exchange elements and plywood (SIGSTRAT), wooden and regional cooperation, voluntary schemes, houses (RUSTIC, CORI BLUE), wooden barrels, important in promoting circular economy. (59 to timber, firewood, pallets and euro pallets, 74 responses per topic.) pellets, strips, sleepers, beams and other wood products (BAMGARDEN, DENCOVA, ECO-ENERG- Key sectors relevant to circular economy were WOOD, NOVAARTIS, POP FRANCE, PRISLEMN, identified based on the findings of RIS3NV, the TRANSILVANIA BOIS, XILOBAIA). (MSDS, 2018) sectors identified in the Maramures County, as having potential for smart specialisation, resource Overall, we can say that the furniture sector in efficiency and circular economy are: Wood Maramures County is based on products with Processing and Furniture Manufacturing, Electrical low and medium added value, which extensively Equipment Production, Agro-Food Industry, Food exploits the natural (wood) and human resources and Beverage Industry, Services Sector, Trade and of the area, being vulnerable to rising prices as Repair Subsector, Tourism Sector. well as some issues related to environmental sustainability. Although these branches have Wood processing and Furniture Manufacturing considerable competitive advantages (Maramures - with a turnover of about 1,562 million Euro County holds the first place at national level in (42.6% of the total turnover of the County in the production and export of furniture), on the 2018) and over 39,480 employees (36.7% of the domestic market and external, based on tradition, total), is represented by 129 furniture factories, know-how, qualified staff, traditional customers, producing chairs, tables, sofas, mattresses and their development is limited by the reduced other types of housing furniture (ARAMIS INVEST, technological transfer from the research ITALSOFA, PLIMOB, SOFA WORKS, TAPARO, environment, as well as poor horizontal and TIFEX CHAIR, TRANSVAL MOB, XPERT PROJECT), vertical integration in supply chains. parquet, baseboards, panels, carpentry elements, beams, galleries, stairs, panelling (AVIVA, KARELIA In the field of wood processing, the trend is to
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22 minimize the amount of material used and the and the adoption of the principles of the circular waste resulting from the production process, but economy. (RIS3NV, 2015) also to optimize/reduce energy consumption in the manufacturing process. These require new Agri-food industry - has a contribution of 5.6% technologies and materials and can also lead to a from the total County turnover, although it reduction in the amount of adhesives used or to employees the highest number of workers the use of functional textiles for coatings. (RIS3NV, occupied in the sector (around 30%) with only 2015) 10,800 were officially employed in 2018, while the rest are people working in own household and Advanced Manufacturing of electrical equipment practicing subsistence farming, with rudimentary - has a turnover of about 902 million euros means on individual holdings of several hectares. annually (24% of the total turnover in 2018), over From the total available land, only 26.5% is arable, 3,577 employees and 11 companies. The product 31.7% are grasslands, 39.3% are hayfields, 0.1% generated in the industry are products with added are vineyards, and 2.4% are orchards. From the value, ranging from transformer stations and perspective of cultivated arable land, Maramures electrical panels (ELECTRO SYSTEM), components County is on the last fifth in the country in terms electrical connection systems (WEIDMULLER of total production of grain cereals, oil plants, INTERFACE), electrical wiring (DIETER, EIFLER, technical plants and vegetables. (MSDS, 2018) PGA ELECTRIC), to equipment and components for electricity distribution systems (EATON) and Food and beverage industry - achieves an Universal Alloy Corporation Dumbravita – a branch annual turnover of over 205 million euro and of US company - a global leader in manufacturing provides 13.2% of the total jobs. There were 255 aerospace products. The business environment companies, many units in the County producing structure is 96% based on SMEs. meat, canned meat and meat preparations (SELMONT, FERMA ZOOTECHNICA, SALAMANDRA The competitive advantage of the sector is PLUS, CARMANGERIA DALIA, GHITTA, CETINA), demonstrated by the volume of exports. Although sweets, pastry, confectionery and bakery (R&B the field has a relatively small contribution to the COM, GRUP CERNESTEAN, BIZO TRADE), dairy formation of regional gross value added, it has products, distilled alcoholic beverages (VALCO), serious development prospects based on the products from vegetables and fruits etc. and are growing external demand, while the potential for concentrated in Baia Mare, Baia Sprie and Seini. differentiation is high. The biggest challenge for Export of agri-food products is about 15 million production technology companies is to align with Euro/year, most of the products made in the County European and global trends, in particular through being destined for the internal market. Maramures product innovation based on the use of essential County is the second region in Romania in terms generic technologies as well as digital technology. of number of certified traditional products, which The field has an extremely important role in turned to be a recognized gastronomic brand serving other industries, through automated, of the country. Among traditional products are robotic solutions, which contributes to the bakery, pastry products, fruits and vegetables, increased efficiency of production processes by beverages, dairy products an also traditional reducing operating costs and improving product dishes, representing a special variety appreciated quality and consistency, thus maintaining the both nationally and internationally. Products are competitiveness of the industry. Definitely, the manufactured by using traditional recipes and sector requires a more efficient use of resources processing technologies and most important, the
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23 local raw materials. Maramures County Council in by GEF / World Bank aiming to treat the organic will introduce, in 2020, the labelling system waste generated in agriculture and commercial “GOOD OF MARAMURES /BUN DE MARAMURES”, activities and energy production (electrical and which addresses to products that exploits a local thermal) as well as creating a demonstration resource, have a traditional recipe and / or use a project for good practices in the area. The project is traditional or innovative technique, all related to indeed a good practice, ensuring the circularity of the Maramures specificity. the biological waste and returning of the nutrients contained in remaining compost into the soil. Maramures County has a good agricultural potential especially for the cultivation of Smart development in this area requires product- vegetables (mushrooms) and fruits (apples, level innovation (especially goods), given the strawberries, peaches, nuts, plums), respectively growing demand for safe and healthy food, for animal husbandry, in this case being present but must also consider the need to protect in the whole value chain. The region also has the environment, reduce water consumption a comparative advantage in the field of animal and energy used in the production process or vegetable fats and oils. Unfortunately, the or the quantities of waste resulting from it. agricultural and animal production in the County Competitiveness can increase through the use is inefficiently capitalized, being oriented mainly to of new packaging, respectively the use of digital self-consumption, while large farms are missing, technology in marketing, distribution, processing. and production is affected by seasonality. (RIS3NV, 2015)
The agri-food field is labour and capital intensive. Service sector - the tertiary sector (of services) has Its energy intensity is medium to high, and the most important contribution to the County’s its technological intensity is low to medium. economy Maramures, generating in 2018, 1,700 Challenges include the complex and expensive million euro and 22.31% of the total turnover. logistics system, the fragmentation of raw material The service sector is responsible for the highest production (lack of forms of association), which in number of employees, as well as higher salaries many cases is exported as raw material instead of due to the higher value added of the sector, being processed in the region. Agricultural waste comparing to agriculture and industry. The (vegetal, animal manure, waste from food and largest share of the employed population in the drinks processing) generated in the individual services sector is registered in the cities, were the households is managed by owners, through their commerce is well developed and polarised around use in the natural fertilization of agricultural land. the big retailers (Lidl, Carrefour, Profi, Dedeman, Nevertheless, the storage of animal manure in etc), rapidly expending in the urban area. individual households until its spread in the field, is a potential source of groundwater pollution, The trade and repair sub-sector - have the largest used in many cases as the only source of drinking contribution to the tertiary sector, bringing over water. 469 companies, most of them small family and neighbourhood businesses. There are good practices however for managing bio-degradable waste in Maramures, such as the Tourism sector - Maramures County is an “pilot plant for biogas production” in the city of attractive tourism destination due to its natural Seini, an investment financed within the project reserves, protected natural areas, mountains, “Integrated Control of Nutrient Pollution” financed lakes and salted water resorts, but most important
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24 due to its local traditions and stunning ethno- favour of borrowing goods & services (circular folkloric attractions that highly contributed to the view). As far as agro-tourism is concerned, the development of agro tourism. On the Maramures rational use of resource and proximity agriculture territory there are: Rodna Mountains National could be valuable opportunities for the owners, Park - Biosphere Reserve, 9 “Natura 2000” for the tourist and for circular tourism as well. sites and 34 natural areas of national interest. Maramures represents a highly desired tourist Maramures is a well-known destination for destination worldwide, because of its unique and practicing eco-tourism and rural tourism, with indisputable natural and traditional heritage, tourism businesses that already apply components being one of the most famous and popular tourist of the circular economy. In Maramures, many destinations in Romania. There are more than tourist and agro-tourist guesthouses serve 500 registered businesses from small hotels, authentic food, based on local products and offer pensions, restaurants, bars, that generated in integrated services for recreation, which are part 2018, a turnover of 64.091.940 EUR. While, the of the circular economy approaches. Many of salaries in this sector continues to be the lowest Maramures’ tourism and agro-tourism businesses salaries in the County. offer tourist packages that include outdoor and leisure activities (bicycle and sports equipment A touristic destination can obviously influence all rental, sports, services adjacent to sports such as the steps from accommodation to local activities transportation and catering, hiking and guided as they take place in the destination itself. The tours, spa treatments, etc.), as well as cultural migration towards circular economy is very much experiences (initiation into traditional crafts and related to the tourist options, deciding how local art, participation in cultural and traditional to travel, i.e. with which transportation mean, events, thematic excursions, etc.). These circular how to consume and what to do at destination. business models from Maramures tourism sector Transitioning from linear to circular tourism is can be further developed and multiplied, which definitely a way to differentiate. The latest tendency will lead to increasing the share of tourism in the in accommodation is in line with the reduction of county’s economy and to valorising the special goods & services’ possession (linear view) and in potential of Maramures’ tourism.
Visit Maramures App
Prelucii Hills – Preluca Nouă (Photo: Maramures County Council)
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25 The IT&C (information and communications) Renewable energy sector as a support sector - is as support sub-sector - has a low presence in not well-developed but potential exists. According Maramures County, compared to other areas in to the studies performed by Ministry of Industry, the region. There are 241 active companies, pro- the potential for renewable energy in Maramures viding equipment, software solutions, develop- consist of solar energy, with an optimal global an- ment services, consulting and IT&C services, with nual radiation (figure 8) and biomass, with the po- a number of about 900 people, and a turnover of tential of 2062 Tera Joule, of which 71.29% from 69.95 million Euro, meaning 1.90% from the total agricultural biomass and 28.71% from forestry turnover of the County. The main companies in (figure 9), as well as geothermal resources, insuffi- terms of turnover and number of employees are cient analysed so far.12 MULTINET, ONE IT, ASTINVEST, FIDA SOLUTIONS, INDECO SOFT, PROGRAMMING POOL, REPKA Due to rural character and the existing agricultur- ELECTRONICS, SOFTVISION, TRENCADIS, YELLOW al resources, the County has an important poten- SOFTWARE, and GOSERV. tial for bioenergy and nutrients recovery, through bio waste anaerobic digestion, this refers, but is The development potential of the IT&C sector at not limited, to biomass from agriculture and for- the local level is significant, as a response to the estry, manure, organic waste, vegetal waste, po- growing demand for digitalisation of the public tential totally unexplored so far. Valorisation of and private sector, the existing financing oppor- such waste brings ecological benefits, income di- tunities for the new start-ups and spin-offs, and versification for farmers and forest owners, jobs the large number of young people graduating in in rural enterprises and business opportunities the field, including at the Centre University North for them, new and better energy infrastructure Baia Mare, branch of Technical University of Cluj and services in rural areas and new sources of Napoca, as long as the new graduating specialists revenue to support essential public infrastructure are retained in the County. and services in rural areas. (Special Report 05, EU Court of Auditors, 2018)
Figure 8 - Biomass map of Romania (MININD) Figure 9 - Solar map of Romania, Joint Research Center of the EU Commission
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26 Activities and projects important for county the increase of the energy performance of the circularity blocks of flats all over the county with a valuable impact on the resource consumption and quality There are different operations that public of life for the citizens. They are part of a modern administration and private stakeholders city planning activities and first steps to transition implement in order to fulfil some aspects of the to a circular county. transition to a circular economy. Some of them are: • Maramures Integrated Waste Management System (IWMS) – a project of • The pilot plant for biogas production in Maramures County Council, financed by the the city of Seini - achieved three main objectives: Environment Sectoral Operational Program - EU reducing the pressure on the environment as a financial instrument. result of ensuring a better one, waste management - results from animal husbandry activities (both at Waste management is a sector of a vital importance the level of individual households as well as at the for the circular economy, because is depicting level of companies); energy production (electrical the population’ consumption habit and has a and thermal) using as raw material - waste great potential for waste reducing and recycling. animal - manure and vegetable silage; creating This could happen by modifying consumer’s a demonstration framework on good practices in habits, improving the waste management and this field. The investment is funded by the Ministry consequently diverting waste form landfill and by of Environment and Climate Change within enabling a market for secondary raw materials of the project "Integrated Control of Nutrient out of waste recycling. Pollution", financed in turn by GEF / Bank World Bank, International Bank for Reconstruction and The sector is managed under the Integrated Development and co-financed by the Romanian Waste Management System in Maramures Government. (IWMS), implemented under the responsibility of the Maramures County Council, and consisting • Construction works in order to reduce of investments in building the necessary waste carbon emissions in the City of Seini - by creating infrastructure and integration of all necessary an Eco-Friendly transport infrastructure funded under ROP-Axis 3, priority 3.2. The total amount is 22,530,991.64 lei.
• Baia Mare - Thermal rehabilitation, replacement of thermal and electrical installations and installation of renewable energy sources - to increase the energy efficiency of public buildings. There are many projects already implemented with a direct impact on the decrees of the natural resources consumption (to generate heat and warm water).
• There are many operations under ROP IWMS Maramures – Farcasa (Photo: Maramures County 2014-2020 for the Intervention works regarding Council)
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27 elements for sorting, collection, transport, transfer, the separate collection of municipal waste and for treatment, recycling and final storage of a small the sorting of separately collected waste (2 sorting quantity of waste. Apart from the infrastructure, stations – in Sarbi with a sorting capacity 32,000 final closure and greening of six waste brown tons / year and in Sighetu Marmației with a sorting fields was foreseen. capacity of 22,600 tons / year). The sorting stations will sort paper, cardboard, metal and plastic waste The Integrated Household Waste Management collected separately, and glass waste, which will System in Maramures County apply the principles be transported directly to recyclers. of circular economy, because all stages (Collection of household waste; Transport to transfer stations; The administrative-territorial units from Sorting / Treatment; Storage) have been designed Maramures County (Maramures County Council to achieve the specific objectives of the project together with the 76 Administrative Units) IWMS, established on the basis of the Large have associated within the Intercommunity Infrastructure Operational Program 2014-2020 Development Association for Integrated and of the 2020 Strategy objectives, as follows: Household Waste Management in Maramures County (IDAIHWM), in order to elaborate and • Decreasing the amount of stored waste; implement the Project of Integrated Waste Management in Maramures County. • Promoting the use of waste for the production of alternative raw materials, by The objectives of IDAIHWM refer to: increasing the amount of recycled / recovered waste; • Improving the environment quality for the population of Maramures County by renewing and • Creating decent living conditions by developing the local infrastructure for household establishing efficient waste management waste management; structures and ensuring a clean living environment. • Creating the necessary institutional The mechanical-biological treatment plant in structures for implementing the county waste Sarbi will have an average capacity of 150,000 management system; tons of waste / year. After the mechano-biological treatment, the biodegradable waste will be • Approaching and managing waste in a 100% processed, and 23,898 tons of recoverable unitary and integrated way, the final goal being to waste will be sent to recyclers. The amount solve the environmental problems and to ensure of biodegradable waste will be reduced by specific quality public services for the inhabitants deviating from collection as a result of individual of Maramures County; composting in rural households with about 12,530 tons of waste and by selective collection of about • Developing and implementing a common 83,600 tons. The biodegradable waste, from strategy on the operation of the waste system. the rural environment, will be transformed into Implementing the concept of circular economy; natural fertilizer based on composters that each household will receive from the town hall. • Creating and managing new services for the community of Maramures County, in order Preparation for reuse and recycling of municipal to increase the quality of life and to reduce the waste: the project provides investments both for impact of human population on the environment.
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28 IWMS Project is under development: about 86% The total municipal waste quantity generated in of the construction works are finalized, and the 2017 was 86,382.3 tonnes with a waste generation contracts for delegation of waste management indicator of 186 kg/capita, while the connection to the sanitation companies are under work (only rate to sanitation services was 100% (APM Annual two contracts are signed so far). Waste is collected Report, 2018). from population, commercial activities, industry and institutions. Waste is managed based on rules The waste composition in 2017 was 52% provided for separate collection of biodegradable biodegradable waste, 11.2% paper and cardboard, waste, packaging waste, voluminous waste and 10.6% plastic, 3.1% wood, 5.1% glass, 11% dangerous waste. Vegetal waste generated in metal, 6.5% inert waste. The high percentage housing shall be composted at the site, electric of biodegradable waste is explained by the low and electronic equipment waste and batteries sorting rate, only 11% from the total generated and accumulators waste are subject of separate amount (9861.6 tonnes in 2017), meaning that a campaigns, while waste from constructions and great amount of waste is remaining is unsorted demolitions are only partially collected. and cumulated in the biodegradable waste category.
IWMS Maramures – Farcasa (Photo: Maramures County Council)
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29 The Maramures County Council has been and is • MOBI - started in 2020 and aims to create a involved in various national and international sustainable platform for cross-border mobility projects, with many opportunities for cooperation of people and goods, by improving transport and partnership, exchange knowledge and and border infrastructure and connectivity experience. Among those is worth mentioning: of public transport routes, strengthening cooperation between public administrations • Environmental Education and Education and professional organizations, developing for Sustainable Development in Romania infrastructure for transport and border. - with the objective to develop a program for education in the field of environmental • Mara Strategy - one of the important projects protection and education for sustainable has started in 2019, aiming to digitise public development in Romania. administration and facilitate the interaction between citizens and County public • MORE4NRG - Measuring progress of regions administration. An informatics system will be in renewable energy and energy efficiency, the designed to manage the County’s archives, overall objective of the project is to develop digitize processes and document flows, a method for measuring the progress of the including retro-archiving from the existing regions in achieving their energy related goals, traditional archive and a portal created to Evaluation is an essential step in developing an provide online interface for citizens by providing action plan, and by implementing the project information and assistance, forms, receiving the regions will become more efficient in terms requests, issuing documents, including of energy production and consumption. computer system for managing geospatial information. Based on a complementarity • Energy Games - Energy Takes Shape - envisage with REDUCES project, within the next to stimulate the active participation of students investment strategy of Maramures County and teachers in order to reduce greenhouse will be included important issues linked to gas emissions, by training them on how to the transition to circular economy. save energy in schools and at home, as well as raising their awareness of the importance But not only public administration is interested to of conserving natural resources, by promoting the transition to circular economy. That includes energy efficiency and renewable energy. local companies as well.
• SMART EUROPE - Smart strategies for work During REDUCES project, interesting business creation based on regional innovation had a model cases are identified in each region, related scope to develop those strategies and anchor to 5 general topics of Circular Economy: product them in the local and regional economic life extension, product as a service, renewability/ development strategies and policies. regeneration, resource efficiency and recycling and sharing platforms. • Regions 4 Green Growth - Regions for green development had the role to consolidate the partnerships and continue to explore the progress of energy efficiency and renewable energy in the regions.
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30 In the first year of REDUCES project, Maramures Product as a Service: County Council has identified several businesses in Maramures, as good practice in applying the Circular Economy’ principles, on following topics:
Product life extension:
- ONE IT LTD - offers Managed Printing Services: printing equipment with consumables included and payment only in regime per printed page. Implementing the printing solution offered by ONE-IT, the beneficiary company outsources the printing activities, thus saving up to 30% of the - MultiNET LTD - has developed, in 25 initial costs of printing documents. years of activity, an integrated business system to extend the life of IT products, for maintaining on market the obsolete products (morally or physically outdated), by maintaining their functional parameters and adding new values of use. The used IT products are reintroduced into functional circuit by applying 4xR: Repair (current repairs), Reuse, Remanufacturing (capital repairs) & Recycling (Dismantling - reuse of spare parts, - A&C Ferma Agricola LTD - owns the WEEE). necessary equipment for agricultural activities and provides full packages of agricultural works and products, for landowners. The landowners do not have the possibility to own all the necessary equipment and they look for the most complete services for cultivating their land. - ATP Exodus Group has developed a remanufacturing system for extending the life of different brands’ auto components, in the context of Circular Economy concept. The technology used in remanufacturing process ensures a quality of the reconditioned parts, similar to the new ones.
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31 Renewability: - Kema Tronic LTD - member of the CLEMS Cluster, is an engineering firm, specialized in - CEPRONEF Baia Mare - has realised a unit renewable energies, technical design, having 5 for electricity production from solar source and its patents in wastewater treatment (one in circular capitalization on the profile market, benefiting from economy) and more than 200 projects in all over the Green Certifiers mechanism. The beneficiary is the country, being strongly involved in tackling Baia Sprie City Hall that initiated the photovoltaic the circular principles in wastewater treatment. park project, accessing the Green Certificates During 2012-2014, Kema Tronic introduced an scheme both the effort to limit greenhouse gas innovative and intelligent technology for advanced emissions and an attractive transfer of economic anaerobic fermentation at Danutoni Wastewater effects for the local community. Treatment Plant - Valea Jiului (Romania). Through this technology, Danutoni WWTP has significantly increased the renewable energy production, in the same time reducing the resources required for final sludge disposal. This technology saves 50% of the energy required to treat wastewater and sewage sludge and instead produces energy. Another problem they want to solve is the sludge management costs, which are at least 50% of a wastewater treatment plants costs. Through this technology, the final sludge quantity has decreased with 30%, the digested sludge quality has improved with 15%.
- RUSTIC Co - builds wooden houses with innovative & ecological design, combining the advantages of natural resources with the high performance of modern materials. The business model of Rustic contribute to achieve high quality, durable wooden constructions with current design, respecting the principles of energy efficiency, fire resistance, earthquakes resistance, made in a short period of time and at an affordable price.
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32 The business models related to the last 2 topics of Three out of four universities, performing also the circular economy - relevant for the REDUCES research activities, could contribute to the project - Resource efficiency / recycling and development and uptake of circular economy in Sharing platforms, will be analysed by all project the region; however, at the moment none of them partners, in the second semester of 2020 and in offers circular economy education: the first part of 2021. - North Baia Mare University Center of Taking into consideration the major interest the Technical University of Cluj-Napoca, having of Maramures County for waste management the Engineering Faculty and a Department on through the implementation of IWMS (Integrated Engineering and Technology Management, Waste Management System), Maramures County offering bachelor, master's and doctoral studies; Council will host the inter-regional learning event The offer of the Faculty of Engineering includes "Circular Economy - Resource Efficiency and Bachelor studies - Engineering and Environmental Recycling". The event will address to relevant Protection in Industry, as well as Master studies - issues regarding the application of the principles Environmental Impact and Risk Assessment. These of circular economy in Romania, the North- specializations have a high potential to further West Region and Maramures County: legislation, include the circular economy in the Curricula; policies, funding programs, other ways to support local initiatives in the field of circular economy with - “Babes-Bolyai” University Cluj-Napoca emphasis on resource efficiency and recycling, - Sighet Extension - with 3 faculties: Sciences as well as business models from Maramures in Economics and Business Management, County, on the topic of resource efficiency and Geography, Psychology and Educational Sciences recycling. Also, the international partners will visit – with bachelor's and master's degree programs; 2 business models from Maramures County, with activities related to the efficient use of resources - "Vasile Goldis" Western University - Baia and recycling. Mare Branch - with 2 faculties: Sciences Economics and Natural Sciences, Engineering and Computer At Maramures County level there are many Science - with 4 study programs at license level. other projects funded on ROP 2014-2020 mainly for 2.1 and 2.2 calls. The funding philosophy, Apart from the formal education, there is an behind private operations funded by RDA North- important non-formal educational offer coming West, is the company’s development, performant from more than 29 educational institutions, technologies acquisitions, eco efficiency increase, focused on developing new competencies and new products/services and other. At least 61 skills for the changing work environment, social private projects were implemented according to economy, social responsibility and integration of statistical data provided by RDA North-West.13 the unemployed people, most of them offered based on financed European programmes. Education and Research. Higher education is Is worth saying that non-formal education in represented by four universities in Maramures sustainability related topics, including circular County, with over 5,188 students (of the 3,788 economy is provided mainly by various entities in undergraduate level, 1,314 at master's level and the framework of international projects, described 86 at doctoral level), while the municipality of in the above section. For example, at least Baia Mare has long tradition in the field of higher one educational program in circular economy education of 59 years, since 1961.14 is recently available in Romanian language:
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33 “Education for Zero Waste and Circular Economy'', Platform for Circular Economy. The Institute is offered by the EduZWaCE Erasmus Plus project acting to support new policies and development consortium and addressing two target groups: in the circular economy and is available for managers from industrial companies, and workers establishing new research and demonstration from construction /deconstruction sector. (www. projects in collaboration with the industries. eduzawce.eu) Business support and financed programs for As a conclusion, emerged also from the 93 the circular economy. In 2014, the Action Plan interviews performed with the stakeholders in for supporting Innovative Companies and Job the County, the large majority of them consider Creation in Innovative Areas was prepared by the that educational offer is not responding to the County Council with the help of foreign experts, actual needs, they are claiming the “low level of within the INTERREG IVC “Smart Europe” project. information / skills / learning resources” and The peer-review evaluation, preceded the plan, request the introduction of new curriculum in the revealed some strengths for innovation: the field of circular economy at all educational levels. availability of a positive, cost-effective workforce competitive, cooperation in local business Research-development-innovation activities in circles, and also weaknesses such as the missing Maramures County are undeveloped as a result structured cooperation between authorities and of the dismantling or restructuring of former companies or missing business incubators at the institutes, active during the communist and due to North University Center. Problems in accessing the general underfunding of the research sector EU funds by SMEs, insufficient support from the in the last 20 years. R&D institutions relevant for authorities for companies, migration of young circular economy, refer to: Research and Design labour abroad. The Plan sets up a couple of Institute for Non-Ferrous Metallurgy CEPRONEF very interesting measures with the main aim Baia Mare, focused on the renewable energy and of boosting cooperation between the research energy management sector and environmental and companies, and preparing companies for engineering and the North Baia Mare University innovation. (MSDS, 2018) Clusters and business Center of the Technical University of Cluj-Napoca, support structures creation were measures is currently the most important actor in the field proposed by the Innovation Plan. of research at County level, with functioning research centers in fields of electrical engineering In spite of this infrastructure for business (energy quality and efficiency), engineering and remained undeveloped, although several technological management, IT&C (intelligent companies are part of the clusters set up in others dedicated systems). These research centres are counties in the region, such as the: Transylvanian oriented more towards fundamental research Furniture Cluster (TAPARO, EUROCOMFIL, than applied research and in this context, only REMAT MARAMURES), implemented a project to few results end up being implemented in industry. enhance waste recycling from the furniture sector (MSSD, 2018) in the region; the ECO-Innovation Cluster for SUSTAINABLE ENVIRONMENT (CLEMS), located Moreover, at the regional level, the Research in Bistrita, the Cluj IT Cluster including various Institute for Circular Economy & Environment companies from Maramures. The main business “Ernest Lupan”– IRCEM is an entity attached to structure remains the Chambers of Commerce the Technical University of Cluj-Napoca and an and Industry Maramures, comprising several official partner within the European Stakeholders consultancy and assistance centres for companies
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34 and offering promotion and business information, training and integration services.
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35 3.3.1 Regional circular economy drivers, strengths and opportunities - Maramures
The main driver for circular economy is the more effective use of local resources. The local specificity of Maramures County itself and the governments have a unique ability to engage with willingness of the County authorities to transform multiple stakeholders from across sectors and the County into a brand and an international catalyse action and this is key to the emergence tourism destination. This will not be possible, in cities of circular economy opportunities, which unless the nature is preserved, the environment is require understanding, collaboration, and action kept clean (free of littering, clean soil, fresh waters within and between sectors. and air), the touristic offer comes with traditions, local food, authentic products of any kind, The Maramures County Council will produce, opportunities for outdoor sports (mountain hiking during the next period, five new sectoral trails, hiking, trekking, rafting, mountain biking, documents important for the community, which etc.), and the County's economy is sustainable, represent strong points in the development of the resource efficient and free of waste and pollution. county and in the application of the principles of the circular economy: The local strengths, as they result from previous discussions and interactions with the stakeholders • Mobility Plan - will be developed within MOBI in the framework of the Smart Europe project project "Modern Border Infrastructure Successful and the responses received during the interviews, Carpathian Region"; will be the starting point for refer to the high interest in circular economy, the the vision on the development of urban mobility; positive mentality of the local actors and their perception related to the opportunities offered by • County Spatial Planning Plan - will be developed circular economy, in particular resource efficiency within MaraStrategy project - will represent and waste prevention and recycling.15 the spatial expression of the socio-economic development program of the county having the The presence of strong, well developed role of harmonizing the sustainable development manufacturing sectors, such as wood processing of the territory; and furniture manufacturing, electrical equipment, local agricultural and food products, • Investment Strategy of Maramures County - as well as tourism and agro-tourism, provide many will be developed within MaraStrategy project opportunities for the development of circular - will be a strategic investment document to products and the adoption of new business engage investments by valorising the resources models, while the high number of SMEs, reflects of Maramures County and including a section the strong drive of entrepreneurship in the region, dedicated to the circular economy; interested in developing their workforce and educating their own employees, including in the • Tourism Development and Promotion Strategy area of circular economy. in Maramures County - will be developed within MaraStrategy project - will lead to the The local government is fully determined to further diversification of local economy through the develop the County economically and to increase sustainable development of tourism; its resilience and this is highly depending on certain amount of self-sufficiency and the ability to make • County Waste Management Plan of Maramures
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36 County 2019-2025 - is in an advanced stage of type of solutions applied in their organisations. preparation and includes a Program for the Other identified opportunities refer to: prevention of waste generation, which is part of circular economy. • High raw material costs can encourage reuse / recycling; Another local strength is the presence of the Association Bun de Maramures (Good of • Interest in renewable energy and combating Maramures Association), founded within an climate change can encourage investment in Interreg Europe project – Food Chains 4 Europe. the circular economy; Good of Maramures Association will contribute to the sustainable innovation of the food chain • The possibility of extending the life of products in Maramures County, by introducing the can increase interest as it reduces costs; "Good of Maramures" labelling system for the most representative local products. “Good of • The opportunity to exchange experiences and Maramures” label will start to be implemented good practices at European level; in 2020, representing an alternative and an opportunity for local food producers that do not • The characteristics of products and services have the "Traditional Product" certificate, to be specific to the circular economy can encourage recognized as exponents of traditional food from both consumers and entrepreneurs if they are Maramures, based on local recipes and materials. properly promoted;
In addition to the strengths determined on the • The possibility of developing networks at EU basis of actions and initiatives carried out at the level to promote the circular economy; level of local authorities the opportunities for circular economy have been explored through • European directives and funding opportunities the interviews. In formulating the possible in this area can encourage public authorities opportunities, the five key elements proposed by to support the development of the circular the project have been considered: (1) resource economy. efficiency and waste prevention; (2) renew/ regenerate/renewable energy; products life Concerning funding opportunities it is very extension through maintenance and repair an important that starting with 2021 a new important opportunity; (3) sharing platforms and multiannual financial period is coming into force (4) products as service, important opportunities and Romania will benefit from it. To the moment, for circular economy. the negotiation process is not ready yet but, there are some figures for Romania such as 19.6 billion The responses to the questionnaires confirm the Euros – allocated to Romania from Recovery status quo of the companies in the region, those Plan. Next Generation EU to direct investment are more interested in improving their resource quickly to where it is most needed, reinforce the efficiency and reduce/recycle their waste; single market, step up cooperation in areas such opportunities which are actually the first approach as health and crisis management, and equip the in a circular economy. More sophisticated solutions Union with a long-term budget to drive the green such as, “services instead of products” or “sharing and digital transitions and build a fairer and more platforms” are less considered, probably also due resilient economy. Hence, Maramures County to incapacity, at this moment, of imagining this need to prepare to use all these opportunities to
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37 decrease the impact of threats and weakness.
More opportunities are related to the presence of several educational, R&D and business support entities that could get involved in further uptake of the circular economy in the region. Those The educational program in circular economy, are “North Baia Mare University Center” of the available in Romanian language: “Education for Technical University of Cluj-Napoca, the Babes- Zero Waste and Circular Economy”, offered by Bolyai University Cluj-Napoca - Sighet Extension, the EduZWaCE Erasmus Plus project consortium the “Vasile Goldis” Western University - Baia Mare and addressing two target groups: managers Branch - with 2 faculties: Sciences Economics from industrial companies, and workers from and Natural Sciences, Engineering and Computer construction /deconstruction sector. (www. Science - with 4 study programs at license level; the eduzawce.eu) regional level the Research Institute for Circular Economy & Environment “Ernest Lupan” – IRCEM, and regional clusters such as the
• Cluj IT cluster - established in 2012, is currently the largest cluster in the field in Romania. In 2016, the cluster acquired the SILVER label from the European Secretariat for Cluster Moveco – “Mobilising Institutional Learning for Analysis (ESCA). Better Exploitation of Research and Innovation for the Circular Economy”, an Interreg Danube Project, • The Transparent Energy Cluster (TREC) - facilitated the preparation of a “Transnational acquiring legal personality only in 2015 under strategy for the transition to the circular economy the name Transylvania Energy Cluster. It in the Danube region” including the identification received the SILVER certificate from ESCA in of possible material streams for the Danube region 2018. and roadmaps for the strategy’s implementation, a Roadmap and Action Plan to implement the • The Transylvanian Furniture Cluster - transnational strategy and country roadmap for established in 2013, developing continuously, Romania and a Circular economy toolbox for small in the first months of 2016, managing to obtain and medium-sized enterprises, including financial, GOLD certification from ESCA in 2017. technical and information tools.
There is highly interesting international education and research projects offered in the region and is worth mentioning:
C-Voucher, an instrument developed through a Horizon 2020 project with the aim to develop new cross-sectorial value chains across the EU by
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38 supporting SMEs on the move away from linear value chains (cradle to waste) towards circular models (cradle to cradle -Cradle to Cradle® concept this is a new approach for designing intelligent products, processes and systems taking into account the entire life cycle of the product, optimizing material health, recyclability, renewable energy use, water efficiency and quality, and social responsibility).
INSIGHT Erasmus Plus project – “Fostering Industrial Symbiosis through the development of a novel and innovative training approach”, offering to develop a new professional profile, the industrial symbiosis facilitator, and the training curriculum necessary for it. This industrial symbiosis facilitator would be responsible of different tasks: to conduct an analysis in its area of influence, to define and promote possible synergies between companies from different sectors, to capitalise on the benefits of the circular economy in them, etc.
Moreover, the specific sectoral opportunities, have been identified in correlation with the five elements of circularity proposed by the project, as they are emerging from the specific challenges identified in the above section, those are presented in table 2 (overleaf).
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39 Opportunities Long-life Renew/Regenerate Product as Resource Sharing products a service Efficiency Platforms and Waste Recycling
Furniture Prolong the life Renovate/renew Lease Reduce Identify manufacturing of the furniture old wooden furniture consumption of opportunities products by furniture and instead of wood, energy, for sharing better quality elements sale (office chemicals in equipment and design; model) the production and machinery process for wood Offer longer processing or warranty and Reduce waste related means repair services and emissions
Use recyclable materials (wood).
Wood Wood with FSC Industrial Lease of Improve Identify processing certificate for symbiosis – for wooden procurement opportunities wood products; using sawdust houses practices in for sharing – e.g sawdust order to avoid equipment More innovative pellets low quality and machinery products; timber for wood processing or Product design Improve the related means focused on product quality durability by value added applying modern treatments, meaning that wood can resist biological degradation even longer, as well as locking in carbon.
Table 2: Elements of circularity
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40 Opportunities Long-life Renew/Regenerate Product as Resource Sharing products a service Efficiency Platforms and Waste Recycling
Electric Better product Analyse Lease Improve Electrical equipment design, focused opportunities for complex manufacturing equipment manufacturing on product remanufacturing equipment processes. to be used performance of components instead of Use resources through and long life; and new business sale more efficient sharing models based (materials and platforms Products on performance energy), limit (consumer innovation contracts and their utilisation model, Moveco based on reverse logistics of chemicals in platform) the use of the production essential generic process and technologies as reduce waste well as digital and emissions technology.
Agrofood Opportunities Processing N/A Improve Sharing processing for more local agricultural manufacturing paltforms for food products waste, manure, processes. food exces and local supply animal and food and near to waste through Reduce expiration anaerobic consumption of date, that digestion, wood, energy, could be producing chemicals in oriented to nutrients and the production disadvantaged biogas process people
Reduce waste and emissions
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41 Opportunities Long-life Renew/Regenerate Product as Resource Sharing products a service Efficiency Platforms and Waste Recycling
Tourism Ecotourism and Processing food N/A Energy Sharing sustainable no more than efficiency in accomodations destinations 50 km distance hotel buildings, with tourist brand from the hotel & the use of restaurants renewable Sharing energy platforms for food leftovers for charity
Waste New business Maintaining Lease Your trash is Moveco management models the materials in products my treasure Platform providing from use for longer instead of model https:// the design through products buying danube-goes- stage onwards, reconditioning Collaboration circular.eu/ prolongation at county of the product level, within lifecycle and IWMS, between reducing the authorities, amount of waste local resulting at the communities, end of the life waste cycle collectors and recyclers
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42 3.3.2 Regional Circular economy barriers, weaknesses and threats
In identifying barriers for circular economy, the financial and technical business support schemes approach provided by the EMF Toolkit has been as important for the development of the circular followed. This is to combine a standard analysis of companies, while some comments pointed out market failures and regulatory failures with social the inefficiency of the existing business support factors and the economic concerns of business. models and their need for concrete technical The methodology refers to 15 types of barrier assistance. in four categories. It starts with the economic concerns of businesses that are assessing - The last perceived barriers as important these opportunities: profitability, capital and for 50 to 70 of the respondents are the ineffective technology. Barriers in applying circular economy, environmental infrastructure in terms of as perceived by the stakeholders, respondents to wastewater collection and treatment, waste, as well the applied questionnaire, are: as the business infrastructure and digitalisation.
- The most important economic barriers, The importance of these barriers has been according to half of responses, are the established based on the responses provided by unavailability at large scale, of the affordable the interviewed organisations and also based on technology and the high level of the required the previous analysis and strategies performed investments, while respondents referred the in the regions; those are presented in table 3 low level of awareness from the consumer side, (overleaf). to the need of providing economic incentives to companies.
- Perceived market barriers are the cost, still acceptable, for the raw materials, the inexistence of product standardisation, as well as the low level of financing of the circular business models.
- The legal framework for circular economy is considered inadequate, while the unpredictable legislation and undesired consequences of the existing requirements are perceived as barriers for circular practices.
- The vast majority consider that the low level of information and education regarding circular economy, the mentality and unsustainable behaviours are important barriers for circular economy.
- 60 out of 92 respondents considered the
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43 Type of barrier Description Importance
Economic Not profitable 30
Capital intensive 53
Technology not available 50
Market failures Acceptable cost of natural resources 60
Inexistence of circular standards for products 50
Missing incentives 62
Regulatory failures Inadequately defined legal frameworks 62
Low predictability of legislation 67
Implementation and enforcement failures 50
Table 3: Barriers
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44 Type of barrier Description Importance
Social factors Low level of information / skills / learning / 66 specialization in the circular economy
Linear way of thinking, mentality based on consumption 51
Unsustainable consumer behaviour 62
Business support Reduced financial support for businesses that 62 want to become circular 63 Reduced technical support for businesses that want to become circular 63
Insufficiently promoted existing funding schemes 62
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45 Main weaknesses for the development of circular - Lack of educational programs in economy in Maramures County, as perceived by circular economy is reducing the chance for stakeholders are: implementation of CE
- The quality of environmental, business and - Low level of accessing all the available EU educational infrastructure funding
- Low level of specialized, competent staff, in - Exodus of labour force and brain drain all structures of the County (69) because of a lack of possibilities
- Lack of traceable data and information and - Changes in the political climate and their accessible over time (big data) (66 responses) influence over the businesses
- Low level of collaboration between research and industry (71 responses)
- The academic and vocational education is not matching the needs of the companies16
- Low waste recovery rate;
- The concept is not well known among consumers and there is thus no market demand for products from the circular economy or specific services;
- Very few facilities / investments at local level;
- The mentality regarding the status of “garbage” and not of waste resources
Main identified threats for circular economy, as for innovation and smart economic development refer to:
- Inadequate legal framework
- Inadequate infrastructure
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46 3.3.3 Development of prospects for circular economy
The Circular Maramures is definitely an ambitious in the future to better design of products that will goal if we consider the national and regional context, ensure increased product performance and longer although is not impossible. Many opportunities life. The potential for local agricultural products have been identified in the public and private and traditional food products is increasing, along sectors and those relate first of all to the expected with their demand in ecotourism and cities that improvements in resources efficiency and waste contributes to shortened supply chains reduced reduction/recycling, the type of opportunities emissions from transportation, food waste and which are actually the first approach in the circular packaging waste. There are a lot of opportunities economy. These could unlock important financial to improve agricultural production and in food savings, drive innovation ahead and contribute processing and to reuse/process the agricultural to business competitiveness, and last but not and food waste (manure, animal and food waste) least, bring the desired environmental benefits: through anaerobic digestion, producing nutrients a reduction of HGH emissions, preservation of and biogas contributing and advancing with the natural resources (forest, wood, and water), nutrients cycle; an anaerobic digestion installation a reduction of consumption of the selected could then process the bio-waste generated from products, green jobs creation and a general boost different sources, including the wet fraction from to the local economy. population, and requires the public founding and local authorities involvement due to the high level Responsible exploitation of natural resources of necessary investment. (wood, soil, water) will ensure sustainability of sectors connected to those resources Maramures has a great potential to become an (wood processing and furniture and agri-food ecotourism destination and an international sectors). In the field of the wood processing brand, “to capitalize on the authenticity of and furniture manufacturing the trend is to architecture, wood culture, folk art, well-preserved minimize the amount of material used and the local folklore, crafts and traditions, gastronomy, waste resulting from the production process, museums, contemporary cultural production, to optimize/reduce energy consumption in the but also the uniqueness of landscapes, diversity manufacturing process, including other modern natural resources or the historical heritage of trends that could be easily embraced: renovate/ the county”(MSDS, 2018). In this respect, more renew of old wooden furniture and elements, attention will be paid to ecotourism elements, furniture and wood elements leasing instead of transportation, sharing accommodations, selling, opportunities for sharing wood elements, increasing the energy efficiency of existing hotel equipment and machinery for wood processing. buildings, purchasing locally, etc., measures that The electric equipment manufacturing has will stimulate the development of other sectors, in an extremely important role in serving other a circular, sustainable manner. industries, through automated, robotic solutions, which contributes to the increased efficiency of The building sector, even if not mentioned as a key production processes by reducing operating costs sector, due to its rather small contribution to the and improving product quality and consistency, county’s economy, has an important potential for thus maintaining the competitiveness of the a circular economy. Three perspectives should be industry. Definitely, the sector requires a more mentioned here: the need for renovation of the old efficient use of resources and should concentrate public and private buildings, in particular housing
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47 Figure 10 - The framework conditions for circular economy in Maramures County
erected in the communist time, applying industrial Each of these opportunities is limited, to a certain production processes to reduce waste during degree, by a number of barriers. Potential options construction and renovation, including modular to overcome these barriers have been identified. construction of wood building components, To enable a systemic transition towards the circular prospect interesting the opportunities in the economy, local authorities might also consider, wood processing sector, expanding the reuse and apart from regulatory changes that should come high-quality recycling of building components from the national government, to set the local and materials by applying design for disassembly framework conditions for the circular economy techniques, material passports, increasing the by building the necessary environmental and utility of existing assets by unleashing the sharing business infrastructure, acting as a facilitator and economy (peer-to-peer renting, better urban gathering at the same table the public institutions, planning), multi-purposing buildings such as academia and businesses for a real cooperation. schools, and repurposing buildings. The waste infrastructure is now finalised and it is the role of public authorities to ensure this will be fully exploited, including by stimulating citizens to reduce and sort their waste, applying
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48 the economic instruments now provided by the in the next period: Mobility Plan, County Planning, legislation (pay as you throw, deposit return Maramures County Investment Strategy, schemes for packaging), working in cooperation Development and Promotion of Tourism Strategy with environmental responsibility schemes for in Maramures County, as well as the County further developing waste recovery infrastructure Waste Management Plan of Maramures County and recycling technologies, and building a strong 2019-2025. system for traceable and reliable waste data. The potential for increasing energy efficiency in Mobility Plan - developed within MOBI project - buildings and using more renewable energy is funded by the HUSKROUA Program, will underpin huge. the vision for the development of urban mobility: strategic axes, lines of action and measures on Therefore, the capital city of the county, Baia urban models and mobility networks, integrated Mare, is part of the Covenant of Mayors Pact and public transport, efficient and qualitative, as has committed to reduce its energy consumption well as efficient and flexible governance of the by 22% until 2020 and beyond. A sustainable county mobility, integrated information and energy action plan has been developed setting communication systems, new mobility monitoring up measures for increasing energy efficiency of systems, optimizing asset management, new public buildings, adopting economic instruments energy paradigms, mobility and transition, to stimulate private buildings renovation, encouraging habits change, education for investments in renewable energy. Moreover, sustainable mobility, awareness and promotion of green public procurement is enacted and in spite mobility sustainability. of not having yet methodology for green public procurements, circular and green criteria’s are Maramures County Spatial Planning - developed possible to introduce if a minimum education on within MaraStrategy project, represents the the topic is provided. spatial expression of the socio-economic development program of the county having the Education has a key role in advancing circular role of harmonizing the sustainable development economy, and reformation of universities’ of the territory. The document will take into curricula in order to include resource efficiency account the socio-demographic structure and and circular economy topics is mandatory. There economic activities, the inter-county, regional is a lot of enthusiasm out there coming from and national territorial context, the directions companies, NGOs, and other entities that could and development priorities of the county at the be better harnessed, by keeping consumers and territorial level, for a maximum period of 10 years, producers informed, offering vocational education established based on the prospective diagnosis to and facilitating the emergence of new circular skipping /reducing of development gaps. At the initiatives and ideas! These potential policy options same time, the document will have an action plan should not be considered as recommendations for implementing its provisions - territorial public but as mandatory actions that set the ground for policies, programs and projects, measures of circular economy in Maramures. organization over time, specifying responsibilities and sources of funding, public policies, programs The focus of Maramures County Council for and public investment projects necessary for the county sustainable development and for sustainable development and competitive increasing the circularity potential is materialized territory. by the sectorial documents that will be elaborated
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49 Maramures County Investment Strategy - Maramures County Waste Management developed within MaraStrategy project, will Plan 2019-2025 - is being prepared under the contribute to the development of the county coordination of Maramures County Council, in communities, by identifying investment collaboration with Maramures Environmental opportunities and attracting investors. The circular Protection Agency. The County Waste economy section will cover EU policy, including Management Plan will include a chapter entitled its contribution to the European Environment “Waste generation prevention program”, which will Plan, national policy, the state of transition to the present the analysis of the waste sector, elements circular economy, and measures - instruments provided in art. 41 and art. 42 of the Law no. - programs. Within the Maramures County 211/2011 on the waste regime republished, with Investment Strategy, European and national subsequent amendments and completions. The regulations, the advantages of the transition to a waste prevention program is part of the circular circular economy, the impact on the environment economy and will be the first county tool for the will be presented. In addition, the relevant factors evolution towards a sustainable model, from (economic sectors, enterprises, universities, the environmental, economic and social point of authorities and public institutions) and their activity view. In addition, the Master Plan on Integrated applying the circular economy will be identified Waste Management in Maramures County will and evaluated. Important components will relate be updated and a Report for the development / to public-private partnerships and cooperation in extension of the Integrated Waste Management the field of the circular economy, as well as to the System in Maramures County will be elaborated, population awareness, the public sector and the correlated with the County Waste Management business environment concerning the adoption of Plan and the Master Plan. the principles of the circular economy. In addition, European and national programs in the field of circular economy compatible and applicable in Maramures County will be identified.
Strategy for Development and Promotion of Tourism in Maramures County - developed within MaraStrategy project, will lead to the diversification of local economies through sustainable tourism development, by supporting employment-friendly growth, by developing endogenous potential as part of a territorial strategy for certain areas, including the conversion of declining industrial regions, as well as increasing accessibility and valorising the specific natural and cultural resources (investment in tourism infrastructure). The proposed investments will contribute to the sustainable capitalization of the local tourist resources and of the competitive advantages of tourism at local level, while preserving the Maramures identity.
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50 4 Regional Conclusion – Maramures County
To assess the status of circular economy in the Education in the circular economy does not county of Maramures had been used information exist in the formal/academic system although provided by the key strategies focusing on the the presence of three universities in the major smart specialisation of the region sustainable cities of Maramures, is a good sign for potential development of the region as well as on a field improvement of the existing curricula. There are research conducted before. however, opportunities in education based on several European projects, and the training in The baseline indicators that characterise the “Zero Waste and Circular Economy”, “Facilitator level of circularity in the focus sectors could not for Industrial Symbiosis” along with specific tools be calculated due the unavailability of some (Moveco tools and roadmap), are available on data and the lack of previous studies concerning free online platforms and will be promoted to the circular economy in Maramures County. The interested stakeholders. circularity level provides the necessary guidance to set the regional ambition level and is referred The local government is fully determined to further to as the baseline for monitoring and measuring develop the county economically and to increase the progress and refers to the circular material its resilience and this is highly dependent on a use rate, or the circularity rate as the share of certain amount of self-sufficiency and the ability material resources used coming from recycled to make more effective use of local resources. The products plus the recovered materials and the local governments have a unique ability to engage overall materials use. However, in order to have with multiple stakeholders from across sectors and a clear picture and a baseline for planning and catalyse action and this is key to the emergence monitoring the progress, we will need the data in cities of circular economy opportunities, which and will continue discussions with the responsible require understanding, collaboration, and action agencies about what kind of data is needed and within and between sectors. They have a key role how it can be collected / extracted from the in ensuring the necessary environmental and existing data basis. business infrastructure, for example the municipal waste management that could highly contribute The key sectors, identified based on findings of to improvement in the way waste is generated, RIS3NV and MSDS. The presence of strong, well collected and recycled, and consequently diverting developed manufacturing sectors, such as wood waste from landfill. The IWMS is in its final stage processing and furniture manufacturing, electrical of implementation and the local authorities plus equipment, local agricultural and food products, the Association for Intercommunity Development provides many opportunities for the development for Integrated Management of the Household of circular products and the adoption of new Waste in Maramures County (AIDIMHWM), as well business models, while the high number of SMEs, as Maramures County Council, who is the owner reflects the strong drive of entrepreneurship in the of IWMS assets, should take full responsibility in region, interested in developing their workforce managing the system and achieving the waste and educating their own employees, including in recycling objectives. the area of circular economy. As support sectors the IT&C sector and the energy/renewable energy The position of the stakeholders have been sector could play a role in increasing the potential explored through a targeted questionnaire, 93 for a circular economy. responses demonstrated a real interest in circular
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51 economy, the positive mentality of the local actors objectives of the “From Farm to Consumer” and their perception related to the opportunities Strategy and should take into account: offered by circular economy, in particular resource efficiency and waste prevention and recycling. • Provisions related to the sustainable labelling of food products that cover aspects Key opportunities for the circular economy have related to food products that fall into the been identified in all sectors, such as the improving nutritional, social and environmental climate; products in the key sectors by applying circular design, life extension tactics and new circular • Targets for reducing food waste by 2023; business models. The potential for renewable energy and energy efficiency, including in the • Existing funding opportunities through public sector and for digitalisation is important and the Horizon Europe program, which aims for assumed by the local governments (the Sustainable investments of 10 billion. Euro in research & Energy Action Plan Baia Mare, Energy Management innovation in areas such as food, bio economy, Agency Maramures and Mara Strategy Project). natural resources, environment and others; Opportunities are coming along with barriers, of economic, market, regulatory, business and social • Initiating at the level of Maramures County, nature. The first three barriers as perceived by public policies meant to encourage sustainable stakeholders are the (1) unpredictable legislation, consumption and reduction of food waste. (2) low level of information/skills/learning / specialization in the circular economy, (3) reduced Maramures County Council should also take financial and technical support for businesses that into account the targets and measures provided want to become circular. in the New Biodiversity Strategy, which refers to the restoration of damaged ecosystems and Maramures County has an excellent tourist rivers, improving the health of protected habitats potential and hosts a significant number of and species, reducing pollution, "greening" our protected areas. Attracting a large number cities, strengthening organic farming and other of tourists must be properly managed from biodiversity-friendly agricultural practices and environmental point of view, in synergy with improving the health of European forests. The European initiatives. The European Commission application of such measures will contribute to the launched, in May 2020, two strategies to bring improvement of circularity in the sectors of interest nature back into our lives and ensure a fair, in Maramures County: Furniture Manufacturing healthy and environmentally friendly food system. and Wood Processing, Agricultural Sector and Adopted in the midst of the COVID-19 pandemic, Food Processing, and also Waste Management. the New Biodiversity Strategy and the “From The planned actions in the field of protection, Farm to Consumer” Strategy are key parts of the sustainable use and restoration of nature will European Green Deal and will support economic bring economic benefits to local communities, recovery, bringing together nature, farmers, creating sustainable jobs and growth. Funding businesses and consumers to create a sustainable of EUR 20 billion / year for biodiversity will be and competitive future. released through various sources, including EU funds and national and private funding. The “Good of Maramures”/ ”Bun de Maramureș” labelling system, which is initiated and supported Efforts have been made also in the past to by Maramures County Council, fits into the understand the innovation potential of the region,
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52 as well as the R&D capacities. The county has County will have to take into account the recent adopted an Innovation Plan but its implementation initiative of the European Commission - the new is pending. The research-development-innovation Action Plan for the Circular Economy, which paves activities in Maramures County are undeveloped, the way for a competitive economy, neutral in and it’s becoming clear that new R&D&I structures terms of climate impact in which consumers are shall take the place of the old structures; these responsible. started to develop in the form of clusters and new structures created as spin off the international At County level measures will start by improving projects. the education level of policy makers, businesses, communities and citizens (Impact), identify The future action plan should rely on three funding schemes that enable circular initiatives/ “I“pillars in order to raise awareness and capacity businesses (Include) and create awareness on of policy makers and local stakeholders about new materials pathways, business models, more both economically and environmentally most efficient waste management, and logistics, local viable business models in the County based on the benefits, networking, counselling, financing, and five important themes REDUCES project consider: so on. (Inspire) 1) Product life extension, 2) Product as a service, 3) Renewability/regeneration, 4) Resource efficiency Also, the Maramures County Action Plan should and recycling and 5) Sharing platforms. They are: address to the measures on waste in the EU Circular Economy Action Plan, especially since Maramures - Impact: incorporate circular thinking at County has a major interest in waste management political, business, community and societal level; by implementing and expanding the IWMS project. Initiatives will be considered on: waste prevention; - Include: implement operations, improve extended producer responsibility; modernization programs and attract funding schemes to enable of EU waste legislation; helping citizens to sort circular initiatives/businesses; waste, etc.
- Inspire: marketing and PR campaign. RECOMMENDATIONS Spread circular economy thinking through knowledge sharing and creation. - New regional development strategy as well as new Maramures County development In Maramures County, there are many active strategy (and other strategies) should consider businesses that already implement the principles circular economy solutions for improvement in of circular economy starting to make changes all important sectors. A circular economy working within the business models. There are steps in group can be initiated to better design and plan implementing industrial symbiosis but they are the information flow that can lead to the circular still hesitant because of the lack of legislations, Maramureș County, as a starting point. This group networks and because of the materials prices. should include not only policy makers but as well There isn’t yet a market for secondary row business representatives, educators and trainers, materials at the level of the County or region. representatives of NGOs, Clusters as well as the Sharing platforms should be developed in the civil society. future at regional & national level. - Strategic planning should take into account The REDUCES action plan developed by Maramures the correlation of lists and types of projects, which
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53 may increase the level of circularity of Maramureș product portfolio development, etc. As the County, and the common framework of the county financing philosophy changes, the objectives should be able to answer several questions, regarding the transition to the circular economy of namely: Maramureș County need to be clear so that they justify the relevance of projects of local, public or • Where we are (Status quo REDUCES) private interest.
• Where we want to go (Shared vision) - The new business models that accompany the transition to a circular economy must be known • How to get there (REDUCES action plan) and communicated permanently, therefore it is necessary to encourage the creation of networks, • How do we know we got there (PA REDUCES the development of cluster associations and assessment) public-private partnerships. Together, they will be able to approach major projects that will support, - This approach will allow stakeholders, in the medium term, the achievement of the including public authorities, to follow a red line of Maramureș Circular objective. environmental and innovation policies, in order to align with national and European policies - Encouraging the application of extended funded through funding programs included in the producer responsibility schemes could create a Multiannual Financial Framework 2021-2027 or uniform model for the collection of waste data other funding mechanisms, having common goals thus allowing the authorities to take action when and achieving clear synergy by overlapping long- the situation requires. The digitization of data term effects. collection systems is a necessity and corresponds to the position of the European Commission, which - In the transition to a circular economy, considers that the circular economy strategy and the fact that circularity begins with production the digitization strategy are two twin strategies. must be taken into account and, therefore, To this end, local strategies should provide for the design of products for reuse and recycling concrete measures on digitization. must be considered. An awareness program for company employees should be encouraged, using the opportunities provided by the new ESF + fund through the Education and Employment Operational Program (2021-2027).
- Elaboration of some quality secondary materials, at local level, based on research, development, innovation. Therefore, it is necessary to find intelligent investment solutions that address not only the waste industry but also the interested companies. The new Regional Operational Program (existing for the first time in this form) will have multiple types of ERDF interventions to encourage innovation, cooperation of SMEs with the research environment, digital transformation,
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54 5 References And Additional Material
Ali, M. 2013. Sustainability Assessment.
Ellen MacArthur Foundation 2017a. Learning path - Circular design. https://www. ellenmacarthurfoundation.org/explore/circular-design
Ellen MacArthur Foundation 2017b. The concept of a circular economy. https://www. ellenmacarthurfoundation.org/circular-economy/concept
Gleckman, H. 2018. Multistakeholder Governance and Democracy: A Global Challenge. New York: Routledge.
Interreg Europe 2020. Help - FAQs - Policy instrument / Focus on Structural Funds. https://www. interregeurope.eu/help/faqs/12/
Kirchherr, J.; Reike, D. & Hekkert, M. 2017. Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling. Volume 127. https://www.sciencedirect.com/ science/article/pii/S0921344917302835
Lin, T. 2018. Incorporating Social Activism. Philadelphia: Temple University - James E. Beasley School of Law.
Saublens, C. 2012. Policy instruments. http://www.know-hub.eu/knowledge-base/videos/policy- instruments.html
SITRA 2019a. The most interesting companies in the circular economy in Finland. https://www.sitra.fi/ en/projects/interesting-companies-circular-economy-finland/#business-examples
SITRA 2019b. Dictionary - The circular economy. https://www.sitra.fi/en/dictionary/the-circular-economy/
Szuppinger, P. & Kállay, T. 2017. Multi-Stakeholder Governance Model. Interreg Central Europe.
Figures
1. The Danube Goes Circular - Transnational Strategy to Accelerate Transition Towards a Circular Economy in the Danube Region http://www.interreg-danube.eu/approved-projects/moveco/outputs?page=2
2. Chamber of Commerce and Industry Maramures – Economic trends 2018
3. Maramures Strategy for Sustainable development 2014-2020
4. Regional development plan 2014-2020 – Regional Development Agency North West
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55 5. Smart Specialization Strategy of the North-West Development Region
6. Territorial profile 2021-2027 - Regional Development Agency North West
7. Waste Law 211/2011, Law no. 31/2019 on the approval of the Government Emergency Ordinance no. 74/2018 for the amendment and completion of Law no. 211/2011 on the waste regime, of Law no. 249/2015 on the management of packaging and packaging waste and Government Emergency Ordinance no. 196/2005 on the Environmental Fund
8. Bilitewski, Bernd. “Pay-as-you-throw – A tool for urban waste management.” Editorial. Waste Management 28 (2008): 2759
9. Kelleher, Maria, et al. “Taking out the Trash: How to Allocate the Costs Fairly.” C.D. Howe Institute Commentary 213 (2005)
10. Walls, Margaret (November 2011). “Deposit –Refund Systems in Practice and Theory
11. OECD (2001). Extended Producer Responsibility: A Guidance Manual for Governments. Paris, France
12. Johnson, Michael R.; McCarthy, Ian P. (2014-10-01). "Product recovery decisions within the context of Extended Producer Responsibility". Journal of Engineering and Technology Management. Engineering and Technology Management for Sustainable Business Development. 34: 9–28. doi:10.1016/j. jengtecman.2013.11.002.
13. Communication from the commission, European Green Deal, 2019
14. Communication from the commission, EU Action Plan for Circular Economy, 2020
15. The transition to a circular economy. From waste management to a green economy in Romania, 2018
16. Moveco Transnational Report, Interreg Europe, 2019 17. The circular economy between desideratum and reality AE, Vol. 20 • Nr. 48 • Mey 2018 197, Characterisation of the circular economy potential in Romania – to county level.
18. Delivering the Circular Economy, A toolkit for policy makers, Ellen McArthur Foundation, 2015
19. Maramures Environmental Report, APMM 2017
20. Smart Specialization Strategy of the North-West Development Region, ADRNV, 2015
21. Maramures Sustainable Development Strategy, 2018
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56 23. Smart Europe Interreg IVC Project, 2014
24. The Action Plan of Maramures County for Supporting the Innovative Companies and Jobs Creation in Innovative Areas
25. C Voucher funding scheme https://www.nord-vest.ro/c-voucher-schema-de-finantare-pentru- economia-circulara-dedicata-imm-urilor/
26. List of financed projects – Regional Development Agency North West: https://www.nord-vest.ro/ situatii-statistice-regio/
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57 Endnotes
1 Waste Law 211/2011, Law no. 31/2019 on the approval of the Government Emergency Or- dinance no. 74/2018 for the amendment and completion of Law no. 211/2011 on the waste regime, of Law no. 249/2015 on the management of packaging and packaging waste and Gov- ernment Emergency Ordinance no. 196/2005 on the Environmental Fund 2 Bilitewski, Bernd. “Pay-as-you-throw – A tool for urban waste management.” Editorial. Waste Management 28 (2008): 2759 3 Kelleher, Maria, et al. “Taking out the Trash: How to Allocate the Costs Fairly.” C.D. Howe Insti- tute Commentary 213 (2005) 4 Walls, Margaret (November 2011). Deposit –Refund Systems in Practice and Theory 5 OECD (2001). Extended Producer Responsibility: A Guidance Manual for Governments. Paris, France 6 Johnson, Michael R.; McCarthy, Ian P. (2014-10-01). “Product recovery decisions within the context of Extended Producer Responsibility”. Journal of Engineering and Technology Manage- ment. Engineering and Technology Management for Sustainable Business Development. 34: 9–28. doi:10.1016/j.jengtecman.2013.11.002. 7 Eurostat. (2019). 487 kg of municipal waste generated per person, June 23, 2020. Retrieved from https://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20190123-1 8 The transition to a circular economy. From waste management to a green economy in Roma- nia - European Institute in Romania, 2018 9 Moveco Transnational Report, Interreg Europe, 2019 10 The circular economy between desideratum and reality AE, Vol. 20 • Nr. 48 • Mey 2018 197, Characterisation of the circular economy potential in Romania – to county level. 11 Maramures Environmental Report, APMM 2017 12 http://www.minind.ro/domenii_sectoare/energie/studii/potential_energetic.pdf 13 https://www.nord-vest.ro/situatii-statistice-regio/ 14 MSDS, 2018 15 Source: Smart Europe Interreg IVC Project, 2014 16 Smart Europe Final Review Report, Interreg IV, Smart Europe